via Mwana Africa on growth path – The Zimbabwe Independent October 24, 2014
MWANA Africa’s Zimbabwean units Freda Rebecca and Trojan Nickel Mine reported 23% and 5% production growth respectively in the quarter ended September 30 due to an increase in running hours and throughput rate, the company has said.
Mwana Africa said gold output at Freda Rebbeca grew by 23% in the company’s second quarter for the 2015 financial year to 16 555 ounces (oz) compared to 13 503oz in the previous quarter as a result of improvements in feed grade, recovery and milled tones.
Tonnes (t) milled rose by 21,3% to 319,768t and the average feed grade was 9% higher at 2, 25g/t said the group.
Gold recovery for the quarter was 4, 2% higher at 80% compared to 76,8% in the previous period.
“Cash costs for the quarter under review fell 18% to US$880/oz from US$1,078 /oz in Q1 2015, whilst all-in sustaining costs decreased by 17% from US$1,283/oz in Q1 2015 to US$1,061/oz in Q2 2015 demonstrating the mines capability to remain profitable in a lower gold price environment,” the company said in a statement.
The average gold price received during the period was 2% lower at $1,272/ oz.
At Trojan Nickel, Mwana Africa said concentrate production 5% higher at 1,989t due to a 3% increase in the tonnes mined to 160 741t from 155 610t from the previous quarter as the refurbishment of equipment programmes was completed.
Head grade was 2% lower at 1,496% due to the temporary mining.
The company said cash costs increased by 1% to US$13 900/t.
“The operation’s return to profitability has allowed us to reverse previous provisions for deferred tax of US$4 million for the 6 months to September, carried in the accounts as an asset. The reversal is an accounting adjustment with no cash flow impact,” it said.
Mwana Africa said preparatory work is progressing after passing a resolution to restart its smelter.
The company said equipment orders and contracts have been made including for the control and instrumentation, the furnace off gas system, converters, the precipitator overhaul, furnace and converter bricks, transformer inspection, cleaning and testing, cooling system coolers and engineering.
“The submission to the Environmental Management Authority will be made during October 2014,” said Mwana Africa.
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